Nissan ready to invest 'as much as €775m' in Renault's electric vehicle drive     

French carmaker will agree to gradually reduce its ownership of Nissan from 43% to 15%

Nissan Motor is ready to invest up to €775m in Renault’s electric vehicle business, viewing the French carmaker’s reorganisation as a chance to reshape their decades-old alliance.

In exchange for backing the entity being set up by Renault chief executive Luca de Meo, the French carmaker is willing to sign onto a plan to reduce its ownership of Nissan to 15% over time from 43%, said a source who asked not to be identified because negotiations are ongoing.

The moves would alleviate an imbalance that has been a source of friction for years. Renault rescued Nissan in 1999 and sent in Carlos Ghosn, who eventually became CEO of both carmakers and the chairman of their alliance.

He later added Mitsubishi Motors to the partnership but was arrested in 2018 on charges of under-reporting his compensation. He escaped Japan in December 2019 and is now in Lebanon.

Nissan, which owns 15% of Renault and lacks voting rights, sees supporting Mr de Meo’s transformation as a way to repay Renault for coming to its aid over 20 years ago, the source said. Nissan CEO Makoto Uchida and chief operating officer Ashwani Gupta held marathon discussions over the weekend with Renault’s Mr de Meo and Francois Provost, senior vice president of international development and partnerships.

Nissan said it is considering investing in Renault’s electric vehicle entity, and the carmakers said they are working on “structural improvements to ensure sustainable alliance operations and governance”. Renault shares closed about 2.5% higher in Paris.

Nissan is ready to take as up to 15% stake in the electric vehicle and software business that Renault said in May would be based in France and employ about 10,000 people by next year.

Renault also outlined plans to create an entity dedicated to developing and producing combustion and hybrid powertrains, which will be headquartered outside France and also have around 10,000 employees.

Nissan’s Mr Uchida and Mr Gupta and Renault’s Mr de Meo and Mr Provost spent the weekend speaking on the sidelines of the Formula 1 Japanese Grand Prix in Suzuka and nearby Nagoya. The four flew to Tokyo and continued discussions yesterday in Yokohama, where Nissan is headquartered.

Reuters